U.S. Retail Sales Growth Slows More Than Expected In August
14 September 2018 - 11:15AM
RTTF2
Partly reflecting a drop in sales by motor vehicle and parts
dealers, the Commerce Department released a report on Friday
showing retail sales in the U.S. increased by much less than
expected in the month of August.
The Commerce Department said retail sales inched up by 0.1
percent in August after climbing by an upwardly revised 0.7 percent
in July.
Economists had expected retail sales to rise by 0.4 percent
compared to the 0.5 percent increase originally reported for the
previous month.
The weaker than expected retail sales growth was partly due to
the decline in auto sales, which slid by 0.8 percent in August
after dipping by 0.1 percent in July.
Excluding the decrease in auto sales, retail sales rose by 0.3
percent in August after jumping by an upwardly revised 0.9 percent
in July.
Ex-auto sales had been expected to climb by 0.5 percent compared
to the 0.6 percent growth originally reported for the previous
month.
The report showed notable increases in sales by miscellaneous
store retailers and gas stations were partly offset by significant
decreases in sales by clothing and accessories stores and
department stores.
Closely watched core retail sales, which exclude automobiles,
gasoline, building materials and food services, inched up by 0.1
percent in August after climbing by 0.8 percent in July.
"As the boost from the tax cuts starts to fade, spending growth
is likely to continue slowing gradually over the coming months,"
said Andrew Hunter, U.S. Economist at Capital Economics.
He added, "For now, however, with the labor market continuing to
tighten and inflationary pressures building, the strength of
consumer spending growth keeps the Fed on course to continue
raising interest rates once a quarter."
Compared to the same month a year ago, retail sales were up by
6.6 percent in August versus the 6.7 percent year-over-year
increase in July.
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